Question 1

What is the down payment required for a car loan?

Accepted Answer

Car loans require 10-25% down payment (75-90% loan financing). For a ₹10 lakh car, you pay ₹1-2.5 lakhs upfront. Larger down payment reduces EMI, total interest, and improves loan approval chances. Used cars require higher down payment (20-30%).

Question 2

What is the interest rate for car loans in India?

Accepted Answer

Car loan interest rates range from 8.5% to 14% p.a. depending on credit score, income, and lender. New cars get lower rates (8.5-11%) than used cars (11-14%). Electric vehicles often get 0.5-1% discount. Premium customers with high credit scores get best rates.

Question 3

Can I get 100% on-road finance for my car?

Accepted Answer

Yes, some banks offer 100% on-road financing covering car cost, registration, insurance, and accessories. This is available to salaried employees from reputed companies with excellent credit scores. Interest rate may be 0.5-1% higher than standard loans.

Question 4

What is the maximum tenure for car loans?

Accepted Answer

Car loan tenure ranges from 12 months to 84 months (7 years). Most people choose 3-5 years. Longer tenure means lower EMI but higher total interest. New cars can get 7 years, used cars typically max at 5 years. Choose shortest affordable tenure.

Question 5

Can I get a car loan if I'm self-employed?

Accepted Answer

Yes, self-employed individuals can get car loans with ITR for last 2-3 years, bank statements (12 months), business proof, and GST registration. You may need higher down payment (20-25%) and face slightly higher interest rates (0.5-1%) than salaried employees.

Question 6

Should I take a car loan or pay in cash?

Accepted Answer

Take a car loan if: you can invest the money for better returns (>10%), want to maintain emergency fund, or can claim business expenses. Pay cash if: you want peace of mind, don't want EMI burden, or getting high interest rates. Car loans help build credit history.

Question 7

Can I prepay my car loan without penalty?

Accepted Answer

Most banks allow part-prepayment and foreclosure after 6-12 months with 2-5% penalty. Some banks offer zero foreclosure charges. Prepayment is beneficial as it saves interest. Check your loan agreement for specific prepayment clauses and charges.

Question 8

Is car insurance included in the loan amount?

Accepted Answer

Yes, car insurance (comprehensive for first year) is included in the on-road price and covered by the loan. You must renew insurance annually at your cost. Banks require comprehensive insurance throughout the loan tenure, not just third-party.

Lender	Interest Rate	Loan Amount	Tenure	Action
HDFC Bank HDFC Two-Wheeler Loan	10.50% - 18.00%	₹0.1L - ₹2.0L	12 - 48 months	Apply Now →
State Bank of India SBI Two-Wheeler Loan	9.70% - 14.50%	₹0.1L - ₹1.5L	12 - 36 months	Apply Now →
ICICI Bank ICICI Two-Wheeler Loan	10.50% - 16.00%	₹0.2L - ₹3.0L	12 - 48 months	Apply Now →
Kotak Mahindra Bank Kotak Two-Wheeler Loan	11.00% - 18.00%	₹0.2L - ₹2.5L	12 - 48 months	Apply Now →
Axis Bank Axis Bank Two-Wheeler Loan	10.75% - 17.00%	₹0.1L - ₹2.0L	12 - 48 months	Apply Now →

Two-Wheeler Loans

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